Skip to comments.Why Itís Worrying That U.S. Companies Are Getting Older
Posted on 08/04/2014 4:44:01 PM PDT by NachumEdited on 08/04/2014 4:44:48 PM PDT by Admin Moderator. [history]
Not only is the American population aging, businesses in the U.S. also are growing older.
Older firms are increasingly controlling the largest market share in different sectors of the economy, according to a paper by the Brooking Institutionís Robert E. Litan and Ennsyte Economicsís Ian Hathaway. By 2011, the portion of U.S. businesses aged at least 16 years reached 34%, compared to 23% in 1992. Moreover, those mature companies went from employing only 60% of private-sector workers in 1992 to employing nearly three quarters of the private-sector labor force in 2011.
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I think it is worrying as it indicates a lack of entrepreneurship and innovation.
And it represents the destructive influence of government policy on the same.
Beretta started in something like 1526. They’re OK.
In before....ah forget it.
This is kinda interesting. Seems to me the more “smart” regulation we get the more barriers we put up for new businesses.
K Street Lobbying payz off..........
1526?? What’d they make?? Catapults, flails and trebuchets?
Regulations are meant to keep established companies in business and newbies out.
They made arquebuses, a type of early smooth-bore matchlock used from the 15th through the 17th centuries.
...Whips & chains...
I think it was actually gun powder.
I believe you're right; however, I am inclined to think these are symptoms rather than causes.
The causes are, I think, a combination of the following:
intellectual property— one friend I have left Google because they were trying to get him to sign on a new contract that would have made his own years-long research [starting years before they hired him] their intellectual property. (And anything else he produced in his free-time.)
the little guys?
How about we ALL realize that those of us that will thrive, then, now and into the future, are those that understand that we are ALL Free Agents. Always were, always will be.
Needed, salable Skills matter. If you can’t make/create/repair/care for something, you’re useless.
And yes, that includes awesome nunchuck and computer hacking skills. ;)
I think it is worrying as it indicates a lack of entrepreneurship and innovation.”
I used to have a mid-sized company but costs kept increasing so started downsizing to total of two. Impossible to grow beyond a certain point without increasing staff but I make a lot more money than I did when it was larger. Many friends in their early 50’s who absolutely cannot afford not to work have started their own cottage type businesses when they were phased out by the larger corporations.
There are lots of little niches out there to fill. It would be interesting to see exactly how much these types of businesses have increased over the past ten years. It definitely is the era to be creative, at least in this aspect of business.
Thanks Obama, and the Obameconomy.
Oh I agree with you...I found my niche as well.
What I do see though is a lot of folks who dropped out of the workforce these past 7 years...and very few of them have any motivation, passion or innovation potentials that they are pursuing.
Those old companies put a lot of people out to pasture and the government gives them too much to stay there.
Why work when you can get it for free.
Look at Europe. A barista that works 15 hours a month has the same incomas someone who works 160 hours a month.
“Those old companies put a lot of people out to pasture and the government gives them too much to stay there.”
Nobody wants to hire them; if more and more work is unskilled anyway, would you rather deal with a kid you can pay peanuts or an older worker who might have a family and/or mortgage? Heck, even a rent or car payment is more than many young people today are contending with.
I’m shocked at how many young people haven’t just given up on having a family or home of their own; many will never own a new car or even rent their own apartment. Many deserve it due to their political apathy or liberalism, but how long can they watch re-runs of 80s movies (where teenagers bought and gassed cars of their own) before they realize they’ve missed the boat?
I’ve never owned a new car (and understood I probably never would when I started a family), but I live in a home (mostly owned by the bank via mortgage, but I still have use of it) and raise my children and couldn’t imagine life any other way at this point. I don’t envy these young people; it must be grim for them.
I’d like to compare this with Europe. What’s the trend over there, when did it start and what caused it? I’d expect, if this is driven by regulatory capture and an anti-commerce socialist climate, that Europe would be even worse off or that the trend would have started earlier.
Here’s I’d mainly blame the tax and regulatory regime, plus student debt and the lack of a real RE recovery (people borrow against their equity to form businesses or use credit card debt). Look at Kickstarter which is essentially a stock market without opportunity for the upside. Why are people boxed out of these opportunities and great ideas? SEC regulations.
As I have been saying, Obama is the most anti-business president in history.
The causes of early-stage failure are sundry, but clearly there’s an anti-business climate particularly in urban areas. See Uber, Lyft, Airbnb and the resistance they’re getting not to mention food trucks/carts.
What are you guys seeing?
Similar. There are innovative companies all over the place that face regulatory struggles thanks to crony “capitalism” (I hate that phrase because there is nothing capitalist about the government system in place now) protecting the status quo.
Love your handle. BTW, AS3 hits the theatres 9/12.
Thanks. I have Part II but have not watched it. Looking forward to seeing both.
I think there’s still plenty of entrepreneurship but the goal is different. Where once people started companies that they wanted to last forever now they’re starting companies that they want to sell. A favorite business plan, especially in tech, is take 5 years to get a good footprint and get bought before 10.